THE pension scheme was a ''sugar-coated trap'', an academic specialising in welfare for the elderly said yesterday.
''It sounds very attractive, because the contribution rate of 1.5 per cent a month is low, much lower than the three per cent initially proposed.
''Together with the injection of $10 billion by the Government and the condition that those earning less than $4,000-a-month are exempt, the scheme is difficult to reject outright,'' said University of Hong Kong lecturer Dr Nelson Chow Wing-sun.
But, in the long-run, the scheme was not financially feasible, he said.
He said the Government should start educating the public, explaining to them how the fund worked and its possible repercussions.
''It should make it clear how long the scheme can be upheld by such low contribution rate, especially with the potentially ageing population.'' Mr Chow said the scheme required employers and employees, or society, to be generous because the burden would be shifted to them.
